Core Viewpoint - FAW Jiefang Group officially launched the "Jiefang Green Movement" brand, marking a significant shift from traditional vehicle sales to a full lifecycle solution provider in the commercial vehicle sector, focusing on a green circular economy in the aftermarket [1][2] Industry Context - The commercial vehicle industry is undergoing a critical transformation characterized by demand adjustment and market restructuring, with a significant supply-demand imbalance where new heavy truck demand is only 700,000 units against a total ownership of over 10 million units [2] - FAW Jiefang aims to break away from homogeneous competition by focusing on the aftermarket, which is seen as a strategic opportunity amidst increasing competition in the front-end market [2] Strategic Importance - The aftermarket is crucial for FAW Jiefang to extend its value chain, optimize its industrial layout, and create new growth drivers, supporting the vision of "recreating Jiefang" [1][3] - The company emphasizes extending vehicle lifecycles and promoting green remanufacturing as essential paths to carbon reduction, aligning with national policies on green recycling [3] Market Opportunity - The existing fleet of heavy trucks presents a significant market opportunity, with the lifecycle demand for 3 million vehicles within the Jiefang system alone estimated to be nearly 100 billion yuan, and the total market potential in the commercial vehicle sector reaching trillions of yuan [3][4] - FAW Jiefang plans to fill the gap in the aftermarket by providing standardized and professional services, transitioning the industry from chaotic growth to orderly development [3] Business Model and Services - "Jiefang Green Movement" will cover the entire industry chain from vehicle sales to scrapping, including parts supply, financial support, and energy replenishment services, enhancing customer loyalty [4] - The company aims to provide competitive remanufactured parts and personalized vehicle modification services, addressing user pain points related to high costs and difficulties in replacing parts for older vehicles [7] Revenue Goals - The "Jiefang Green Movement" has set ambitious revenue targets, aiming to exceed 10 billion yuan in initial orders and reach over 10 billion yuan in revenue by 2028, and over 13 billion yuan by 2030 [5][7] - The focus is not solely on scale but on reducing total cost of ownership (TCO) for users and promoting carbon reduction in the industry, establishing a benchmark for the aftermarket in China's automotive sector [7]

Core Insights - The commercial vehicle industry is undergoing a critical transformation period characterized by deep competition, rising demand for low-end products, and the influx of new players, prompting the need for strategic shifts in business models [3][5][6] - FAW Jiefang aims to transition from a traditional vehicle manufacturer to a comprehensive solution provider focusing on the entire lifecycle of vehicles, including both traditional and new energy sources, and balancing domestic and international markets [3][5][6] Group 1: Market Challenges and Strategic Responses - The Total Cost of Ownership (TCO) challenges faced by freight operators, such as fluctuating oil prices, high maintenance costs, low vehicle residual values, and counterfeit products, are being addressed through the launch of the "Jiefang Green Movement" brand [1][3] - FAW Jiefang's strategy includes expanding into the aftermarket sector, which is projected to have a market size exceeding one trillion, with a significant business opportunity estimated in the hundreds of billions based on existing vehicle ownership [7][9] Group 2: Business Model and Growth Plans - The "Jiefang Green Movement" brand will focus on three main areas: spare parts services, remanufacturing, and vehicle refurbishment and modification, aiming to enhance the lifecycle value of commercial vehicles [9][11][15] - The company plans to achieve over 10 billion in sales within three years through a structured approach that includes product development, channel expansion, and innovative marketing strategies [16][18] Group 3: Commitment to Sustainability - FAW Jiefang is committed to defining standards for a low-carbon circular economy in the commercial vehicle sector, aligning with national policies on green manufacturing and recycling [5][9] - The establishment of the Jiefang Green Remanufacturing Technology Co., Ltd. marks a significant step in fulfilling the company's mission to lead in the green transformation of the commercial vehicle industry [9][20]